System to determine casino offers

ABSTRACT

A system to determine a product to be offered to a casino player based on player data and on an approximate maximum price for which the product may be sold through a retail channel. Advantageously, a potential increase in a casino&#39;s profit due to a product offer can be determined using the player data, and an approximate maximum profit attainable through sale of the product through a retail channel can be determined based on the determined price. As a result, a product to offer can be determined in a manner which maximizes casino profit.

CROSS-REFERENCE TO RELATED APPLICATIONS COP

This application is a continuing application of U.S. application Ser.No. 09/570,335, filed May 15, 2000; which claims the benefit of U.S.Provisional Application Ser. No. 60/187,269, filed Mar. 6, 2000, for“Revenue-Managed Casino Offers”. The contents of each of theabove-specified applications are incorporated by reference herein forall purposes.

FIELD OF THE INVENTION

The present invention relates to systems for offering products to casinoplayers. More specifically, the present invention relates to a systemfor determining a product to offer to a casino player based on variousvariables relating to the product.

DESCRIPTION OF THE RELATED ART

Casinos employ many systems designed to influence the behavior of casinoplayers. These systems are designed to encourage behavior which isbeneficial to the casinos. For example, in order to maximize an amountof time casino players spend actively gaming, casinos provide casinoplayers with well-functioning gaming equipment, bright lighting, andfree drinks at game machines and tables.

In order to encourage frequent and high-stakes gaming, casinos offerproducts to qualifying casino players for reduced prices. These productsare offered to casino players who have met, certain qualifyingconditions, such as wagering more than a particular amount over aspecified period of time, losing more than a particular amount pervisit, or the like. For example, a manager of a casino identifies, usingcasino records, a casino player who loses an average of $5,000 each timehe visits the casino. The casino manager then offers the casino player ahotel room and meals usable any time the casino player wishes, for nocost or at a substantially reduced cost. The products are offered underthe assumption that maintaining the player as a customer is worth thecost to the casino of the offer. It should be noted that the productoffers discussed herein comprise the offering of goods and/or servicesto casino players for free or for a certain price.

Although the foregoing types of offers were originally reserved for“high-rollers”, casinos are now offering products to a wider range ofcasino players based on their gaming histories. These products are alsooffered under the assumption that maintaining a casino player as acustomer is worth a cost of a particular product offered to the casinoplayer. However, since it is impractical for a casino manager to manageproduct offers on a large scale, casinos have implemented automatedsystems for determining and distributing product offers to casinoplayers.

These automated systems are designed so that casino offers are availableto all casino players as a “reward” for frequent gaming, high wagers, orother behaviors. According to these systems, such as that described inU.S. Pat. No. 5,761,647 to Boushy, a casino player's gaming sessions aretracked using a tracking card, which is a card having a magnetic stripencoded with player information. In operation, a casino player slidesthe tracking card into a card reading device of a game machine prior toinitiating a gaming session with the game machine. The game machineretrieves the player information encoded on the tracking card, collectsgaming information during the gaming session, and transmits the gaminginformation and the player information to a central database so that thegaming information can be associated with the casino player. At periodicintervals, the database is analyzed to determine whether to offer aproduct to the casino player, what product to offer, and at what price.

In conventional systems, such as the one described in the article“Getting Your Share Of Free Stuff”, © 1997 Casino World Holdings, Ltd.,the database analysis proceeds as follows. First, metrics are calculatedbased on the gaming information associated with a casino player,including an average amount per wager, a total amount wagered persession, an average loss per session, a total loss, a sessiontheoretical win, or other gaming-related data. Next, the metrics areused to determine a product offer. In this regard, the central databasestores tables which associate gaming metrics with specific productoffers. For example, a database table may associate a discounted hotelroom with a $25 to $50 average wager, a free hotel room with a $50 to$100 average wager, a free hotel room and meals with a $100 to $150average wager, and so on. Therefore, at specified periods, a product isoffered to a casino player based on the tables and on gaming informationassociated with the casino player. Alternatively, a casino player may bepresented with the tables and also with metrics corresponding to thecasino player's gaming history. In the latter case, the casino playerapproaches a casino representative to redeem an appropriate product.

Although the conventional automated systems allow determination andmanagement of product offers on a large scale, their static natureprecludes easy adaptation to changes in the market for offered products.For example, hotel rooms, show tickets, and the like may be sold for oneprice during weekdays and four times that price during certain events,such as a championship boxing match, COMDEX, or other popular event.Accordingly, use of static tables often results in a situation in whichan increase in a casino's profit resulting from a product offer is lessthan a profit which could have been realized by the casino by sellingthe product through conventional retail channels, such as a retailstore, an online store, a catalog, a toll-free access number, or thelike. As a result, a casino is unable to maximize a difference betweenan increase in the casino's profit resulting from a product offer and aprofit which could have been realized by the casino through aconventional sale of the product.

Moreover, conventional systems do not consider wasted inventory indetermining whether to offer a product to a casino player. Using theabove example, hotel rooms are only offered to casino players wageringat least $50 on average. This rule does not change, even if a hotel roomwill be vacant on a particular night. Accordingly, no revenue isgenerated by the hotel room where revenue may have been generated byoffering the hotel room to a casino player averaging less than $50 perwager.

In view of the foregoing, what is needed is an efficient system fordetermining appropriate products to offer to a casino player in a mannerwhich increases casino profit to a greater extent than conventionalsystems.

SUMMARY OF THE INVENTION

In consideration of the above needs, Applicants have discovered a systemto determine a product to be offered to a casino player based on anapproximate maximum price for which the product may be sold through aretail channel. Advantageously, the approximate maximum price can beused to determine an approximate profit which may be realized by sellingthe product through a retail channel. The approximate profit can becompared to a potential increase in a casino's profit due to offeringthe product to a casino player, and a product to offer can be therebydetermined in a manner which maximizes casino profit with respect to theproduct.

In one aspect, the present invention relates to identification of aproduct which may be offered to a casino player based on gaming activityof the casino player, and determination of an approximate maximum pricefor which the product may be sold through a retail channel.

In another aspect, the present invention concerns reception of playerdata corresponding to gaming activity of a casino player, determinationof an approximate maximum price for which the product may be soldthrough a retail channel, and determination to offer the product to thecasino player based on the player data and on the price.

The present invention also concerns a system to receive player datacorresponding to gaming activity of a casino player, to identify aproduct to offer to the casino player based on the received player dataand a first rule, and to determine a price for the product based on asecond rule corresponding to the product.

With these and other advantages and features of the invention that willbecome hereinafter apparent, the nature of the invention may be moreclearly understood by reference to the following detailed description ofthe invention, the appended claims and to the several drawings attachedhereto.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram of a casino system according to one embodimentof the present invention;

FIG. 2 is a block diagram of a controller according to one embodiment ofthe present invention;

FIG. 3 illustrates a tabular representation of a portion of the playerdatabase of FIG. 2;

FIGS. 4A and 4B illustrate a tabular representation of a portion of theproduct database of FIG. 2;

FIG. 5 illustrates a tabular representation of a portion of the offerdetermination database of FIG. 2;

FIGS. 6A and 6B illustrate a tabular representation of a portion of therules database of FIG. 2;

FIG. 7 illustrates a tabular representation of a portion of the pastoffer database of FIG. 2;

FIG. 8 is a flow chart of process steps to determine a current price ofa product according to one embodiment of the present invention;

FIG. 9 is a flow chart of process steps to offer a product to a casinoplayer according to one embodiment of the present invention; and

FIG. 10 is a flow chart of process steps to offer a product to a casinoplayer according to another embodiment of the present invention.

DETAILED DESCRIPTION

To ensure clarity of the following detailed description, set forth beloware definitions of terms used herein. The scope of the present inventionis not to be deemed limited by the definitions.

Cash out: the act of converting casino credit to cash or tokens. Forexample, a cash out from a game machine may include receiving cash ortokens based on a number of credits stored in the machine, and a cashout from a casino may include receiving currency in exchange forcredits, such as tokens or chips, honored by the casino.

Casino: an entity providing gaming activity to players. As used herein,a casino may be a single entity providing gaming, entertainment,accommodations, and meals, an arcade, a retail store providing gamemachines, a network proprietor providing game machines at several remotelocations, etc.

Casino Player: an individual or group of individuals participating ingaming activity at a casino.

Current Price: an approximate maximum price for which a product may besold through a retail channel. A current price of a product may bedifferent from a list price of the product, especially if demand forand/or supply of the product has changed since the list price wasestablished.

Current Value: an approximate profit that may be obtained by selling aproduct through a retail channel. A current value may be obtained bysubtracting a cost of a product from a current price of the product.

Game Machine: a machine operated by a casino player for gaming purposes.Examples include slot machines, video poker machines, video blackjackmachines, and devices associated with table games such as blackjack,roulette, or craps.

List Price: a price for which a product is offered for sale through aretail channel. In a brick-and-mortar retail environment, a list pricemay be a price printed on a price tag affixed to a product, a sale priceof the product, or another price charged to customers for the product.

Offer Price: a price accompanying a product offer which must be paid bya casino player to receive the offered product. For example, a casinomay offer a casino player, based on the casino player's gaming history,a one-night stay in a standard hotel room for a $10 offer price.

Product: any good or service that may be provided to a casino playerExamples include a hotel room, a buffet, a ticket to a show, and a planeticket.

As a brief description of one embodiment of the invention, a hotel roomfor the current night is considered, the hotel room being owned by acasino and having a list price of $100. According to the embodiment, itis determined that the hotel room has a current price of $200. In otherwords, it is determined that an approximate maximum price for which thehotel room may be sold through a retail channel is $200, despite its$100 list price. Such a difference between the list price and thecurrent price may be due to a popular event occurring around the currentnight, such as COMDEX or a heavyweight championship boxing match.

Based on player gaming data, it is determined that a first casino playerwill likely lose, if he spends the current night at the hotel, $300 morethan he would otherwise lose to the casino. Therefore, it is determinedthat offering the hotel room to the casino player for free will likelyresult in $100 more profit for the casino than could be generated byselling the hotel room through a retail channel. Accordingly, if noother casino player is identified who would lose more than $300 as aresult of the offer, the hotel room is offered to the first casinoplayer. It should be noted that this brief description is not intendedto define the scope of the invention, but rather to quickly familiarizethe reader with some of the concepts set forth in more detail below.

System

FIG. 1 is a block diagram of a casino system in accordance withembodiments of the present invention. As shown, the casino system 100includes a controller 200 in communication with game machines 300 to340. Although the communication media disposed between each of the gamemachines 300 to 340 and the controller 200 are represented as hard-wireddirect connections, it should be understood that each of the gamemachines 300 to 340 may be connected to a network, such as a Local AreaNetwork or a Wide Area Network, to which the controller 200 is alsoconnected. Other networks which may be used in accordance with thepresent invention are a satellite-based network, a cellular network, anRE network, a telephone network, a cable television network, a fiberoptic network, or any other network for transferring data betweendevices. Generally, it should be noted that the controller 200 may be incommunication with hundreds or thousands of game machines, and that eachgame machine may be in communication with the controller 200 using anyof the communication media described above.

The controller 200 is operated by a casino and may be a computer server,such as a Sun® Solaris® server, providing a database server and a WorldWide Web server. Multiple physical devices may be used to perform thefunctions of controller 200 according to the present invention, and someor all of these functions may also be performed manually.

Each of the game machines 300 to 340 may comprise a slot machine, avideo poker machine, a video blackjack machine, or any other gamemachine with which a casino player can participate in gaming activity.Each game machine may also comprise a personal computer, such as thosebased on the Intel® Pentium® processor, a portable computer, a dedicatedterminal, an internet kiosk, a personal digital assistant, a pager, acellular phone, a pay phone, a video game, an automated teller machine,a watch, a vending machine, or any other device capable of providinggaming functionality and of transmitting and receiving data to and fromthe controller 200, For example, in embodiments where the controller 200includes a Web server for receiving requests for Web pages, forgenerating Web pages, and for transmitting Web pages over the World WideWeb, the game machine 300 may be a device capable of transmitting andreceiving data over the World Wide Web.

Also in communication with the controller 200 is a product informationsystem 400, a hotel reservation system 410, and an entertainment ticketservice 420. The product information system 400, the hotel reservationsystem 410, and the entertainment ticket service 420 provideproduct-related data to the controller 200, and may be in communicationwith the controller 200 via any of the communication media describedabove with respect to the game machines 300 to 340. As also discussedwith respect to the game machines 300 to 340, any number of additionaldevices may be connected to the controller 200 for providingproduct-related data to the controller 200 and/or to a casino player.

Those skilled in the art will understand that devices in communicationwith each other need not be continually transmitting data to each other.To the contrary, such devices need only transmit to each other asnecessary, and may actually refrain from exchanging data most of thetime. For example, a device in communication with another device via theWorld Wide Web may not transmit data to the other device for weeks at atime.

Each of the product information system 400, the hotel reservation system410, and the entertainment ticket service 420 may comprise a personalcomputer, a database server such as an IBM® AS/400® server, or anothersystem storing data relating to various products which may be offered toa casino player by a casino. As will be described in detail below, thecontroller 200, according to one embodiment, utilizes receivedproduct-related data to determine an approximate maximum price for whichthe product may be sold through a retail channel. In another embodiment,the controller 200 utilizes product data such as availability of aproduct or demand for a product to determine a product to offer tocasino players.

The product information system 400 may store product informationcorresponding to retail items such as casino-themed clothing and toys,rental items such as car rentals, travel services such as airplanetickets and limousine rentals, and food-related items such as buffets orthe like. The stored information corresponding to each product in theproduct information system 400 may include a cost of the product, anumber of units of the product currently available, a current price forwhich the product may be sold through a retail channel, a cost of theproduct, a current value of the product, a formula for deriving acurrent price of the product, a time by which a product must be soldbefore perishing (show time in a case of show tickets), or otherinformation.

The hotel reservation system 410 may store data relating to hotel rooms,such as data concerning a current price for which a hotel room may besold through a retail channel, costs incurred if a hotel room is notsold (marginal costs), demand, occupancy rates, and list prices (or“rack rates”). Similarly, the entertainment ticket service 420 includesdata concerning available tickets to shows, such as a number of ticketsavailable, a current price for which a ticket may be sold through aretail channel, costs incurred if a ticket is not sold (marginal costs),current ticket values, available seat locations, ticket list prices,ticket demand, and the like.

Devices

FIG. 2 is a block diagram of the controller 200 according to oneembodiment of the present invention. The controller may be implementedas a conventional network server, a dedicated hardware circuit, anappropriately-programmed general purpose computer, or any otherequivalent electronic, mechanical, or electromechanical device.

The controller 200 of FIG. 2 comprises a processor 210, such as one ormore RISC® processors. The processor 210 is coupled to a communicationport 220 through which the controller 200 communicates with otherdevices, such as the game machines 300 to 340, the product informationsystem 400, the hotel reservation system 410 and the entertainmentticket service 420. The communication port 220 may include one or morephysical ports for physical connection to various types of networks.Accordingly, the communication port 220 may be adapted to communicateusing protocols supported by the various types of networks.

Also connected to the processor 210 are an input device 230 and adisplay 240, The input device 230 may comprise one or more devices forinputting data, such as a keyboard, a touch screen, a mouse, a voiceinput device, an infrared port, or the like. The input device 230 may beused by a casino manager to enter data for use by the controller 200 inaccordance with the present invention. Of course, data may also be inputto the controller 200 by a casino manager using a device connected tothe controller 200 through the communication port 220. The display 240is used to display graphics and text to the casino manager, and mayprovide a user interface for inputting data to the controller 200 or aninterface for monitoring processes executing according to the presentinvention. The display 240 may be a CRT computer monitor, a flat paneldisplay, or another display device. In this regard, data may also beoutput to the casino manager in hardcopy form via a printer (not shown)connected to the processor 210.

A clock 250 is connected to the processor 210 for controlling executionof process steps by the processor 210. The clock 250 may also be used toassociate received data with a reception date and time or to associatetransmitted data with a transmission date and time. The processor 210 isalso in communication with a data storage device 255. The data storagedevice 255 is generally a data memory and may include any combination ofmagnetic, optical and/or semiconductor memory. The data storage device255 may also include, for example, random access memory (RAM), read onlymemory (ROM), a compact disc and/or a hard disk. Furthermore, the datastorage device 255 and the other elements of FIG. 2 may each be, forexample: i) located entirely within a single unit; or ii) connected toeach other by a remote communication medium, such as a serial portcable, telephone line, radio frequency transceiver or the like. In oneembodiment, the controller 200 comprises one or more computer serversthat are connected to a remote server for maintaining databases.

The data storage device 255 stores a program 260 of processor-executableprocess steps for operation of the controller 200. In the oneembodiment, the processor 210 executes the process steps of the program260 and thereby operates in accordance with the present invention, andparticularly in accordance with the methods described in detail herein.The program 260 may be stored in a compressed, uncompiled and/orencrypted format. The process steps of the program 260 can be stored inthe data storage device 255 during manufacture of the data storagedevice 255, can be downloaded to the data storage device 255 from acompact disc or other computer-readable medium, or can be retrieved froma remote or local source over the communication port 220 in the form ofa signal having the process steps encoded thereon.

The data storage device 255 also stores processor-executable processsteps for basic operation of the controller 200, such as the processsteps of an operating system, a database management system, and “devicedrivers” for allowing the controller 200 to interface with peripheraldevices. These latter process steps are known to those skilled in theart, and need not be described in detail herein.

According to one embodiment of the present invention, the steps of theprogram 260 are transferred from the data storage device 255 into a mainmemory, such as a RAM, and executed therefrom by the processor 210. Inother embodiments, hard-wired circuitry may be used in place of, or incombination with, processor-executable process steps for implementationof the processes of the present invention. Therefore, embodiments of thepresent invention are not limited to any specific combination ofhardware and software. Moreover, process steps performed in accordancewith the present invention may be performed wholly or in part by one ormore of the controller 200, the game machines 300 to 340, the productinformation system 400, the hotel reservation system 410, theentertainment ticket service 420, and any other device in communicationtherewith.

The storage device 255 also stores: i) a player database 265; ii) aproduct database 275; iii) an offer determination database 285; iv) arules database 295; and v) a past offer database 305. The databases 265to 305 are described below and portions thereof are depicted in tabularform in the accompanying figures. As will be understood by those skilledin the art, the schematic illustrations and the accompanyingdescriptions of the databases presented herein are merely intended todemonstrate operable systems for associating and storing information.Not all of the databases are required for all embodiments of theinvention, and a number of other data structures may be employed besidesthose suggested by the tables shown. Similarly, the illustrated entriesof the databases represent sample information only; those skilled in theart will understand that the number and content of the entries can bedifferent from those illustrated.

Databases

Player Database

FIG. 3 illustrates a tabular representation of a portion of the playerdatabase 265 according to one embodiment of the present invention. Aswill be described in detail below, the data in the player database 265is used in one embodiment of the invention to determine a product tooffer to a casino player. The tabular representation includes a numberof sample records, with fields associated with each record. Thoseskilled in the art will understand that the database 265 may include anynumber of records, and that each record may include fields in additionto those shown in FIG. 3. The fields of FIG. 3 specify: i) a playeridentifier 266 which uniquely identifies a casino player; ii) a playername 267 of the individual casino player; iii) a session theoretical win268; iv) a session coin-in 269; v) a year-to-date win 270; vi) hotelguest information 271; and vii) show ticket information 272. In a casethat several individuals are playing as a team, the names of the severalindividuals are listed under the player name 267.

The controller 200 may receive the information stored in the playerdatabase 265 from one or a combination of: a casino employee using theinput device 230 and the display 240 of the controller 200; surveysfilled out by casino players; the product information system 400; thehotel reservation system 410; the entertainment ticket service 420; thegame machines 300 to 340; and other sources. For example, theyear-to-date win 270 corresponding to a casino player may be based oninformation received from several game machines used by the casinoplayer during a current year.

The session theoretical win 268 associated with a casino playerindicates a theoretical amount of money which should be won by thecasino from the casino player during a gaming session. A gaming sessionis defined, in one embodiment, as a period of time during which a casinoplayer is continuously or semi-continuously gaming. For example, asemi-continuous gaming session may be interrupted by short breaks for arest, snacks or the like. In other embodiments, a gaming session isdefined from the time a player tracking card is inserted into a gamemachine until a card is ejected therefrom.

The session theoretical win 268 may be calculated using a formula suchas “Session Theoretical Win=(Average Session Wager)(Number OfWagers)(Casino Edge)”. In this regard, a casino edge is a percentage oftotal money wagered by casino players that will be kept by the casino,on average. Many game machines can be programmed to provide a particularcasino edge. In Las Vegas, typical casino edges for slot machines rangefrom 2% to 10%.

The session coin-in 269 associated with a casino player indicates anamount of money wagered by the casino player during a current gamingsession, and the year-to-date win 270 indicates an amount won or lost bythe casino from the casino player during a current year. Of course,although the tabular representation of the database 265 shown in FIG. 3includes information relating to a session or a year, information storedin the database 265 may also relate to other events or time frames, suchas a trip to a casino, a number of trips to one or more casinos, anumber of trips to one or more casinos during a predefined number ofdays prior to a current date, or the like.

Examples of other gaming information which may be stored in the database265 include alternate currency points earned by a casino player, such ascasino credit applicable to product offers, a session win, which is atotal amount of money that the casino wins from a casino player during agaming session, a total length in time of a current session, a paid outjackpot value, or a number of consecutive wins or losses.

Other stored gaming information may include information regarding acasino player's gaming tendencies (e.g. doubling down, taking insurance,drawing to flushes, etc.), identification of other casino playersassociated with the casino player, information about gaming by thecasino player during previous sessions, information about gaming by thecasino player which does not occur at the casino (e.g. gaming at othercasinos, lottery ticket purchases), and information specifying afrequency with which the casino player participates in gaming activity.Other gaming data which can be tracked and stored is known in the art,as described, for example, in U.S. Pat. Nos. 5,613,912, 5,761,647, and6,003,014.

The hotel guest field 271 and the show ticket field 272 flag whether ornot the casino player is a hotel guest of the casino or has showtickets, respectively. As described below, the hotel guest field 271 andthe show ticket field 272 may be used to determine a product to offer tothe casino player. In some embodiments, casino players may be offeredhotel room or show ticket upgrades. In these embodiments, it isadvantageous to include in the player database 265 an indication of thetype of hotel room or specific show ticket possessed by the casinoplayer.

The player database 265 may also include information about a casinoplayer unrelated to gaming, including the casino player's generalpreferences, sporting events in which the casino player is interested,tourist activities in which the casino player is interested, and storesat which the casino player shops.

Product Database

FIGS. 4A and 4B illustrate a tabular representation of a portion of theproduct database 275. The product database 275 includes data relating toproducts which may be offered to a casino player in accordance with thepresent invention. Each product represented in the tabularrepresentation is associated with a record including several fields. Thefields specify: i) a product identifier 276; ii) a product description277; iii) product inventory 278; iv) a list price 279; v) a currentprice 280; vi) a product cost 281; vii) a current value 282; and viii) acurrent price formula 283.

The data stored in the database 275 may be received from one or acombination of outside sources such as the product information system400, the hotel reservation system 410, or the entertainment ticketservice 420, may be input to the controller 200 by a casino employeeusing the input device 230 and the display 240, or may be received fromother devices. In this regard, the data may be stored, in whole or inpart, in the outside sources as well as or instead of in the datastorage device 255. The data may also be generated by the controller 200based on historical trends or the like.

In one embodiment, the data stored in the product database 275 isupdated in real time. For example, when a room is reserved at a casinohotel, the hotel reservation system 410 indicates to the controller 200that the room has been reserved, and the controller 200 updates theproduct inventory 278 corresponding to the reserved hotel room. Inanother example, a hostess at a casino restaurant may use a computerterminal connected to the controller 200 to indicate to the controller200 that the current price 280 of a lunch buffet is only $5.00, ratherthan a list price of $10.00, because no one is willing to pay the listprice 279.

Generally, the product identifier 276 identifies a particular productwhich may be offered to a casino player, and the associated productdescription 277 provides a description of the product. The productinventory 278 indicates how many units of the product remain in thecasino's inventory, and thereby reflects availability of the product. Ofcourse, some products cannot be associated with a number of units ininventory (massage, gift certificates), and therefore the productinventory 278 of such products is deemed “UNLIMITED” in the productdatabase 275. As defined above, the list price 281 specifies a price forwhich the product is sold through conventional retail channels. Forexample, a person contacting a hotel to determine a price for a hotelroom on a particular day is given the list price of the hotel room.

The current price 280 specifies an approximate maximum price for which aproduct may be sold through a retail channel. In the embodimentillustrated in FIGS. 4A and 4B, the current price 280 is determinedusing an associated current price formula 283, described below. Thecurrent price 280 is, according to one aspect of the invention, anyprice used to determine an approximate maximum profit which may berealized by selling the associated product through a retail channel. Aswill be described in detail below, this profit is used in someembodiments to determine whether or not to offer the associated productto a casino player based on the casino player's gaming activity.

“Current”, as used in the term “current price” is not meant to imply atemporal requirement. For example, if it is determined that anapproximate retail price for which a souvenir glass may be sold througha retail channel will rise from $10 to $20 in one week, the currentprice 280 of the souvenir glass may be determined to be either $10 or$20.

The current price 280 may be equal to the list price 279, greater thanthe list price 279 if the casino determines that it may be able to sellthe product through a retail channel for greater than the list price279, or less than the list price 279 if the casino determines that itmay not be able to sell the product through a retail channel for thelist price 279. The current price 280 may also be less than, equal to,or greater than a market or “spot” price, or a transfer rate, which is aprice charged by one unit of an entity, such as a hotel department of acasino resort, to another unit, such as a gaming department of the samecasino resort.

The current price 280 may be determined based on availability of theproduct, demand for the product, a list price of the product, aninventory of the product, historical, current, or forecasted purchasingpatterns relating to the product, or various time-dependent factors,such as the day of the week, a number of hours until an event, or thelike. For example, a hotel room with a $100 list price 279 may be soldthrough a conventional retail channel for $200 on the night of aheavyweight championship boxing match, but for only $50 on a Tuesday inApril. Accordingly, the current price 280 of the hotel room is $200 inthe first instance and $50 in the second instance.

Availability of and/or demand for related products may be considered indetermining the current price 280 of a product. For example, ifavailability of hotel rooms at a casino decreases due to renovations, acurrent price 280 for a hotel room at a nearby casino may increase.Also, in a case that demand for flights to Las Vegas decreases due toinclement weather, a current price 280 for hotel rooms at a Las Vegascasino may decrease.

In one embodiment, determination of the current price 280 followsrevenue management principles. Revenue management principles are knownin the art, as described in the book Revenue Management—Hard CoreTactics For Market Domination, by Robert G. Cross.

The product cost 281 indicates a cost to the casino of an associatedproduct. In one embodiment, the product cost 281 is a cost which will beincurred by the casino if the associated product is provided, and, inanother embodiment, the product cost 281 is a cost which will beincurred by the casino whether or not the product is provided to acasino player. As an example of the latter type of product cost 281, alunch buffet will cost a casino one amount regardless of how many mealsare sold.

The current value 282 of a product is determined by subtracting anassociated product cost 281 from an associated current price 280.Accordingly, the current value 282 represents an approximate maximumprofit which may be received by a casino by selling the product througha retail channel for the current price 280. It should be noted that thecurrent value 282 may be a negative value in a case that the productcost 281 is greater than the current price 280 for a particular product.The current value 282 may be represented in dollars or in alternatecurrency points established by the casino and usable to receive productoffers.

As stated above, the current price formula 283 associated with a productis used to determine the current price 280 of the product. The currentprice formula 283, according to one embodiment, incorporates revenuemanagement principles to determine an approximate maximum price forwhich a product may be sold through a retail channel. The current priceformula 283 may take into account any combination of factors, such asthe list price 279 of the product, the product cost 281, availability ofthe product as reflected by metrics such as the product inventory 278,and/or product demand as reflected by metrics such as a number of soldout shows, a number of reserved hotel rooms, a number of unsold seats,and/or a current day of the week. As stated above, a current price 280of a product may be determined based on demand for a different product.For example, the current price formula 283 associated with a hotel suite277 is a function of a number of sold-out shows.

It should be noted that the current price formulae 283 shown in FIG. 4Bare examples only, and that a current price formula 283 used inconjunction with the present invention may be significantly morecomplicated, in accordance with known revenue management principles.

Some possible products which may be represented in a database such asthe database 275 include clothing, toys, hotel rooms, car rentals,theater tickets, movie tickets, airplane tickets, limousine rentals,taxi rides, free meals and preferred gaming services. While it ispossible to offer any type of product to a casino player in accordancewith the invention, the casino may offer those products that have lowmarginal costs or for which a current price 280 is easily determined.

Offer Determination Database

FIG. 5 illustrates a representation of a portion of the offerdetermination database 285 according to one embodiment of the presentinvention. The offer determination database 285 is used in oneembodiment to select a product to offer to a casino player whichmaximizes a difference between an increase in the casino's profit due tothe product offer and a profit attainable through sale of the productthrough a retail channel. The illustrated representation includes twotables 286 and 287, each corresponding to a different casino playeridentified by an associated player identifier 266. Included in eachtable 286 and 287 are records containing associated fields. The fieldsspecify: i) a product identifier 276 identifying a product from theproduct database 275; ii) a current value 282 associated with theproduct in the product database 275; iii) an expected revenue from offer288; iv) an expected profit from offer 289; and v) a difference 290.

The expected revenue from offer 288 associated with a product specifiesan increase in casino revenue which is expected if the product isprovided to the associated casino player. The increase is defined as anincrease over the revenue which would be received from the casino playerif the product was not provided. The increased revenue may includecomponents such as money lost by the casino player during gaming,purchases of products by the casino player, and money lost by othercasino players due to recommendations made by the casino player. In thisregard, it should be noted that promotion of positive feelings toward acasino due to providing a product may result in increased revenue to thecasino.

The expected revenue from offer 288 may be determined based on playergaming data and/or other player information. For example, the expectedrevenue from offer 288 associated with a hotel room may equal an averagesession theoretical win multiplied by an average number of sessions perday. In a case that a product is offered to the casino player for acertain monetary amount (the offer is not free), the monetary amount isadded to the associated expected revenue from offer 288.

It should be noted that two expected revenues 288 associated with twodifferent product identifiers 276 and a same casino player may not havea linear relationship. In this case, offering both products to thecasino player would not be expected to generate revenue equal to the sumof the two expected revenues 290. For example, an expected revenuegenerated by offering the products associated with product identifiers276 “P-12-23455” and “P-38-90782” may be $115, rather than $125, the sumof associated expected revenues 288.

The expected profit from offer 289 associated with a product indicatesan expected increase in profit received by the casino if the product isprovided to the associated casino player. The expected profit from offer289 may be determined by subtracting the product cost 281 from theexpected revenue from offer 288.

Finally, the difference 290 specifies a difference between an expectedincrease in the casino's profit due to a product offer and anapproximate profit attainable through sale of the product through aretail channel. Accordingly, the difference 290 is calculated, in oneembodiment, by subtracting the current value 282 associated with theproduct from the associated expected profit from offer 289. Thedifference 290 is a positive value if more profit is expected to begenerated as a result of providing the product than as a result ofselling the product through a retail channel, and the difference isnegative if more profit will be generated as a result of selling theproduct through a retail channel. As described in detail below, use ofthe difference 290 enables a casino to determine a product to offer to acasino player which maximizes a difference between an increase in thecasino's profit due to the product offer and an approximate maximumprofit attainable through sale of the product through a retail channel.

Rules Database

FIGS. 6A and 6B illustrate a tabular representation of a portion of therules database 295 according to one embodiment of the present invention.The tabular representation includes records corresponding to products,with each record specifying: i) a product description 277 as describedwith respect to FIGS. 4A and 4B; ii) a product rule 296; and iii) aprice rule 297. The rules database 295 may include records and fields inaddition to those shown. Generally, the information in the rulesdatabase 295 is used to determine a product to offer to a casino playerand an offer price which the casino player must pay for the offeredproduct.

A product rule 296 is a conditional expression used to determine whetherto offer an associated product to a casino player. In the embodimentshown in FIGS. 6A and 6B, a product rule 296 is a Boolean expressionwhich may depend upon a wide variety of variables, such as a currentvalue 282, product inventory (of the associated product or of anotherproduct), player gaming data, and player-related data such as whetherthe casino player has a hotel room, whether the casino player wants tocash out, or whether the casino player enjoys musicals. The playergaming data and player-related data used to evaluate a product rule maycome from any of the databases described above or from other sources,such as surveys or the like. If a product rule is evaluated as TRUE, theassociated product is selected as a candidate for offering to a casinoplayer. In one embodiment, the product rule 296 associated with aproduct is designed so that the rule 286 will be TRUE if an increase ina casino's profit due to offering the product will be greater than aprofit which would result from selling the product through a retailchannel.

The price rule 297 associated with a record includes data fordetermining an offer price for which to offer an associated product to acasino player. The price rule 297 may be a mathematical functiondepending on variables relating to casino player gaming data and/orproduct-related data. For example, the rules database 295 illustratesprice rules 297 in which an offer price depends upon no variables (offerprice is FREE), a current value 282 of an associated product, a productcost 281, a session theoretical win 268, and a list price 279. Productoffers having a free offer price are often referred to ascomplementaries, or “comps”.

The price rule 297 associated with a product may, in some circumstances,result in an offer price greater than a product cost 281. Such anarrangement is advantageous because the casino receives a profit on theproduct if the offer is accepted and generates a profit as a result ofan increase in gaming which results from the offer. A price rule 297associated with a product may also result in an offer price less than alist price 279 of the product. This arrangement is advantageous becausea casino player receiving the offer would perceive that his gamingactivity resulted in a product discount, and would thereby be encouragedto increase his gaming activity. In addition, a price rule 297 mayresult in an offer price for a product which is less than the productcost 279. While the casino risks losing money under such an arrangement,the product may nevertheless be offered under the assumption that theproduct offer will result in a net profit for the casino due toadditional gaming revenues received by the casino (e.g. from increasedgaming activity by the casino player) resulting from the offer.

In view of the foregoing, the product rule 286 and the price rule 287provide a system by which a casino manager can easily manipulate whichproducts are offered to a particular casino player and at what price,depending upon information such as a current value of a product,expected revenues resulting from an offer of the product, availabilityof the product, and/or demand for the product. The casino manager isthereby able to precisely control product offers with the intent that adifference between an increase in a casino's revenue due to offering theproduct and a cost to the casino of the product will be maximized.

Past Offer Database

FIG. 7 shows a tabular representation of a portion of the past offerdatabase 305 according to one embodiment of the present invention.Generally, the past offer database 305 tracks, for each offerpreviously-made, the product that was offered, the casino player to whomthe product was offered, the offer price of the product, the time anddate of the offer, and the result of the offer. By tracking offers thathave been made to casino players and a result of each offer, thecontroller 200 can better determine an appropriate product to offer to acasino player in the future. Each record in the past offer database 305represents a single past offer, and includes: i) a product identifier276; ii) a player identifier 266; iii) an offer price 306; iv) a time ofoffer 307; v) a result of offer 308; and vi) resulting revenues 309.

The product identifier 276 identifies a product previously offered to acasino player, and the player identifier 266 identifies the casinoplayer to whom the product was offered. The product identifier 276 andthe player identifier 266 can be used to obtain information on theoffered product and the casino player from the product database 275 andthe player database 265, respectively.

The offer price 306 identifies a price for which the product was offeredto the casino player identified by the player identifier 266. In oneembodiment, the offer price 306 is calculated using a price rule 297from the rules database 295. The time of offer 307 indicates the timeand date on which the product was offered. The time and date may bedetermined using the clock 250 of the controller 200, or may betransmitted to the controller 200 at the time the product is offered bya device in communication with the controller 200. The result of offer308 indicates whether the casino player accepted or rejected the offer.

The resulting revenues 309 associated with an offer are revenues accruedby the casino as a result of the associated offer. The resultingrevenues 309 may be used to determine the expected revenue from offer288 associated with a product and a casino player in the offerdetermination database 286. Although resulting revenues 309 usuallyaccrue after acceptance of an offer, it should be noted that resultingrevenues 309 may also accrue as a result of a rejected offer.Accordingly, it may be advisable for a casino to offer a product whichwill not be accepted if the past offer database 305 indicates thatassociated resulting revenues 309 may accrue. In a case that the offeris rejected, the casino incurs no cost due to the offer and theresulting revenues 309 are entirely profit. To determine whetherrevenues have accrued as a result of an offer rejected by a casinoplayer, the casino may ask the casino player at what time they wouldhave stopped gaming if the offer had not been made. Any revenues accruedafter the time can be attributed to the rejected offer.

As stated above, the past offer database 305 can be used to determine aproduct to offer to a casino player. For example, if the past offerdatabase 305 shows that a particular casino player has accepted threeprevious offers for a $50.00 hotel room, a system according to theinvention may be biased toward offering the same product to the casinoplayer. In another example, if the past offer database 305 shows that97% of all casino players reject an offer for a 50% discount on ticketsto a particular show, the controller 200 may choose not to offer ticketsto the particular show. In addition, if a particular casino playeralways accepts food-related offers and always rejectsentertainment-related offers, the controller 200 may determine that fooddiscounts are more highly valued by the casino player thanentertainment-related offers. Therefore, in order to provide gamingincentive to the casino player, only food discounts will be offered tothe casino player.

In a slightly more complex example, the controller 200 may useinformation stored in the past offer database 295 to determine that 82%of casino players who are guests of the casino hotel accept an offer fora 50% discount on tickets to a casino show, but only 29% of non-guestcasino players accept the offer. Accordingly, the controller 200 can beprogrammed so as to offer the discounted tickets only to those casinoplayers who are staying at the casino hotel. In this regard, the casinoplayers staying at the casino hotel can be easily identified withreference to the player database 275. Each of the foregoing examples maybe implemented by formulating an appropriate product rule 296incorporating variables related to past offer information.

Processes

I. Determination of Current Price

FIG. 8 is a flow chart of process steps according to one embodiment ofthe present invention. In a case that the controller 200 performs theprocess steps of FIG. 8, the process steps may be embodied in hardwarewithin the controller 200, in processor-executable process steps storedon a computer-readable medium such as the data storage device 255 andexecuted by the processor 210, in processor-executable process stepsencoded in an electronic signal received by the controller 200 andexecuted by the processor 210, or in any combination thereof. It shouldbe noted that the process steps may be executed, wholly or in part, byprocessors located in several devices, such as one of the game machines300 through 340, the hotel reservation system 410, and/or any otherdevice in communication therewith.

It should also be noted that each other flow chart of process stepsdescribed herein may be similarly embodied. In addition, the particulararrangement of elements in the flow chart of FIG. 8, as well as in theflow charts discussed below, is not meant to imply a necessary order tothe steps; embodiments of the present invention can be practiced in manydifferent orders.

Briefly, the FIG. 8 process steps include identification of a productwhich may be offered to a casino player based on gaming activity of thecasino player, and determination of an approximate maximum price forwhich the product may be sold through a retail channel. As a result, aproduct to offer can be determined in a manner which maximizes casinoprofit.

Initiation of the FIG. 8 process steps may be triggered in many ways inaccordance with the present invention. For example, the FIG. 8 processsteps may be executed periodically so as to continually update a currentprice 280 associated with each product in the product database 275.Alternatively, the FIG. 8 process steps may be executed each time acasino player wins a prize amount, ends a gaming session, requests acash out, or checks out of a casino hotel.

The process steps begin at step 801, in which a product which may beoffered to a casino player is identified. In one embodiment, the productis identified from among a plurality of products stored in the productdatabase 275. As mentioned above, the product-related data stored in theproduct database 275 may be input to the controller 200 by a casinoemployee using the input device 230 and the display 240, or may beretrieved from the product information system 400, the hotel reservationsystem 410, the entertainment ticket service 420, or another system.

Next, in step 802, an approximate maximum price for which the productmay be sold through a retail channel is determined. Such a price may bethe current price 280 as defined above. Accordingly, in one embodiment,the approximate maximum price is determined based on demand for and/oravailability of the product. In another embodiment, the approximatemaximum price is determined in step 802 using a current price formula283 associated with the product in the product database 275.

Generally, determination of an approximate maximum price for which aproduct may be sold through a retail channel advantageously assists acasino in determining a product to offer in a manner which maximizescasino profit. For example, a casino may choose not to offer a producthaving a determined price which is greater than an expected increase inrevenue resulting from the offer. Similarly, a casino may choose tooffer a product having the largest difference between an expectedincrease in revenue and an approximate maximum price determined in step802.

II. Determination of a Product Offer

FIG. 9 is a flow chart of processor-executable process steps accordingto one embodiment of the present invention. Briefly, the FIG. 9 processsteps include reception of player data corresponding to gaming activityof a casino player, determination of an approximate maximum price forwhich a product may be sold through a retail channel, and determinationto offer the product to the casino player based on the player data andon the approximate maximum price.

Initially, at step 901, player data is received which corresponds togaming activity of a casino player It should be noted that the playerdata may be received in step 901 periodically, after a gaming session,in response to an event, or according to another schedule. For example,the player data may be received in step 901 in real time, in response toa request to cash out, or after detection of a casino player win of aprize amount.

As mentioned above, the player data may be received by the controller200 from one of the game machines 300 to 340, from a casino employee orthe casino player using the input device 230 and the display 240, orfrom other devices in communication with the controller 200, such as thehotel reservation system 401, a lottery ticket dispensing device or thelike. The player data may include many types of data relating to gamingactivity of the casino player, and is stored, in one embodiment, in theplayer database 265 of the controller 200.

Next, in step 902, an approximate maximum price for which a product maybe sold through a retail channel is determined for each of a pluralityof products. The plurality of products may consist of productspre-selected by a casino manager or otherwise selected by the controller200. In another embodiment, the plurality of products may be thoseproducts for which associated information is stored in the productdatabase 275. An approximate maximum price for a product may bedetermined in step 902 as described above with respect to step 802. Thedetermined price of each of the plurality of products may then be storedin association with associated product information in the productdatabase 275.

In step 903, it is determined to offer one of the plurality of productsto the casino player based on the player data and on the approximatemaximum price of the one product determined in step 902. Generally, thedetermination in step 903 is intended to maximize a difference betweenan increase in casino profit due to a product offer and an approximatemaximum profit which could be realized by selling the product through aretail channel. In this regard, an appropriate table 286 or 287 of theoffer determination database 285 may be used in step 903 to select aproduct having a product identifier 276 associated with a greatestdifference 290. In one embodiment, a difference 290 associated with aselected product in the table 286 is compared to a difference 290associated with the selected product in the table 287 to determinewhether to offer the product to the player associated with the table 286or the table 287.

Of course, at least one expected revenue from offer 288 value andassociated expected profit from offer 289 value must be stored in theappropriate table prior to selecting a product in step 903 based on thedifference 290. As described with respect to FIG. 5, the expectedrevenue from offer 288 may be determined based on player data stored inthe player database 265 and/or the past offer database 305, and theexpected profit from offer 289 may be determined based on the expectedrevenue from offer 288, the current price 280 (an approximate maximumprice for which a product may be sold through a retail channel), and theproduct cost 281.

Many different factors and methods may be used in the determination ofstep 903. In one example, it is determined to offer a product having acurrent value 282 (current price 280 less product cost 281) which isless than a session theoretical win 268 corresponding to the casinoplayer. In a case that more than one product has a current value 282less than the session theoretical win 268, stored information regardingthe casino player's preferences may be considered to determine which ofthe more than one products would be most preferred by the casino player.It is desirable to offer a most-preferred product because an offerthereof is believed to provide a greatest incentive to the casino playerto continue gaming, and thereby results in a greatest increase in casinoprofit.

In another embodiment, a product associated with a particular number ofalternate currency points as a current value 282 is determined to beoffered if the casino player has earned an equal or greater number ofalternate currency points, and if the earned number of alternatecurrency points is not equal to or greater than a number of alternatecurrency points corresponding to a product having a greater currentvalue 282.

After it is determined to offer the one product to the casino player instep 903, the product is offered to the casino player in step 904. Theoffer may be transmitted from the controller 200 to the game machine 300to 340 where the casino player is currently located, may be sent to thecasino player's home address, may be sent to the casino player byelectronic mail, or may be transmitted by telephone. The offer may bepresented to the casino player by a casino employee, such as a dealer ata gaming table at which the casino player is currently located. Theoffer may also be output in step 904 to a beeper, a personal digitalassistant, a casino intercom system, a computer, a television, or acasino kiosk used to present offers to casino players.

In a case that the FIG. 9 process steps are triggered by an impendingpayment to be made to the casino player, the casino player may beoffered a choice of taking the entire payment or of accepting the offerin exchange for all or part of the payment due. In this regard, theoffer of step 904 may include an offer price to be paid by the casinoplayer. For example, in a case that a casino player wins a prize amountat a game machine, the casino player may be offered a product inexchange for all or part of the prize amount. Also, in a case that acasino player presses the “cash out” button on a game machine, thecasino player may be offered the one product in exchange for all or someof the credits stored in the machine. Moreover, a casino player may beoffered the one product in step 904 in exchange for all or part ofcasino credits, such as chips or tokens, brought to a cashier window forexchange into currency.

In one embodiment of step 904, the casino player is presented with thelist price of the offered product. For example, the casino player ispresented with the offer “Congratulations! Press the “1” button toreceive your $50.00 jackpot. Press the “2” button to receive $20.00 anda hotel room on the house (list price $100.00)”. Such a presentation isbelieved to incent increased gaming because the casino player perceivesthat he is receiving a special deal on a desired product, and because hemay continue to gamble on the day following his hotel stay. According toanother embodiment, more than one product is determined to be offered tothe casino player in step 903 and the offer in step 904 includes achoice of the more than one product.

The offer may also include conditions that must be fulfilled before theone product will be provided to the casino player. For example, thecasino player may be required to perform a certain action, such ascommitting to a certain amount of future gaming, or a specific eventmust occur, such as a specified sporting event result or the like. Usingthe former example, a player may be penalized if the commitment tofuture gaming is not honored within a pre-specified time period.

Of course, the casino player may be presented with several of thealternative types of offers discussed above. For example, after winninga $100.00 prize amount for hitting a jackpot at a game machine 300, thecontroller 200 may transmit the following offers to a casino player: (i)$100.00 cash; (ii) $50.00 cash and two tickets to a show; or (iii)$10,000.00 cash if the jackpot is hit again within one hour. Such aprocess is described in commonly-assigned co-pending U.S. applicationSer. No. 08/769,085, filed Dec. 18, 1996, entitled “Slot MachineAdvertising/Sales Method”.

It should be noted that step 904 may be delayed until a particular eventoccurs. For example, while a casino player is eating dinner, it may bedetermined that the casino player is to receive an offer for a freehotel room. However, according to this embodiment, the casino player canlearn of the offer only if he returns to the casino floor and operates agame machine after finishing dinner. If this policy is known to casinoplayers, the policy may encourage casino players to return to the gamingfloor. It is desirable to encourage casino players to return to thegaming floor because further gaming may result.

In another embodiment, a casino player may be permitted to ask for moreinformation about the one product after step 904 and before acceptingthe offer. For example, in a case that the offer is for two tickets to ashow, the casino player may ask and receive additional information suchas a time of the show, seat location, plot line, etc. Of course, thisinformation may be included in the offer made in step 904.

III. Rule-Based Determination of a Product Offer

FIG. 10 illustrates a flow chart of processor-executable process stepsaccording to an embodiment of the present invention in which the rulesdatabase 295 is utilized. Generally, the FIG. 10 process steps includereception of player data corresponding to gaming activity of a casinoplayer, determination of a product to offer to the casino player basedon the received player data and a first rule, and determination of anoffer price for the product based on a second rule associated with theproduct.

The FIG. 10 process steps begin at step 1001, in which player datacorresponding to gaming activity of a casino player are received. Step1001 may be executed in response to a particular event, or according toa particular schedule. For example, as described with respect to step901, the player data may be received in step 1001 in real time, inresponse to a request to cash out, or after detection of a casino playerwin.

As also described with respect to step 901, the player data may bereceived by the controller 200 in step 1001 from one of the gamemachines 300 to 340, from a casino employee or the casino player usingthe input device 230 and the display 240, or from other devices incommunication with the controller 200. The player data may include manytypes of data relating to gaming activity of the casino player, and maybe stored in the player database 265 of the controller 200.

In step 1002, a product to offer to the casino player is determinedbased on the received player data and a first rule. In this regard, therules database 295 of FIGS. 6A and 613 includes a product rule 296corresponding to each product therein which can be used in step 1002 todetermine a product to offer to the casino player. As shown in thetabular representation of FIGS. 6A and 6B, the rule may be a function ofreceived player data, such as an average session coin-in, a total playercredit, a year-to-date win, or the like. The product rule 296 may alsobe a function of player information unrelated to gaming, such aspreferences or the like, and information regarding past offers stored inthe past offer database 305. Generally, a product rule 296 is evaluatedto determine if it is logically TRUE and, if so, a product associatedwith the rule is determined in step 1002 to be a product to offer to thecasino player.

Next, in step 1003, an offer price for the product is determined basedon a second rule associated with the product. In the embodiment shown inFIGS. 6A and 6B, the rules database 295 also includes a second rulecorresponding to a product. The second rule, a price rule 297, may alsobe a function of received player data, such as a session coin-in, atotal player credit, a year-to-date win, or the like. The price rule 297may also take into account player preferences, player history, and/orpast offers stored in the past offer database 305. In one embodiment,the price rule 297 is an equation which produces a price. Accordingly,appropriate values for each variable specified in a price rule 297 aresubstituted therein to determine an offer price for the product in step1003.

Finally, in step 1004, the product is offered to the casino player forthe determined offer price. The product may be offered using any of theoffering mechanisms and methods described above with respect to step904.

It should be noted that the process steps of FIG. 10 advantageouslyallow a casino to exert control over particular products which areoffered and offer prices of the products based on changing and dynamicvariables. As a result, a casino is able to determine a product to offerto a casino player which maximizes a difference between increased profitresulting from the product offer and a profit which would be realizedthrough sale of the product through a retail channel.

ADDITIONAL DESCRIPTION

Method #1. A method comprising: identifying a product which may beoffered to a casino player based on gaming activity of the casinoplayer; and determining an approximate maximum price for which theproduct may be sold through a retail channel.

Method #2. A method according to Method #1, wherein the approximatemaximum price is determined based on a cost of the product.

Method #3. A method according to Method #1, wherein the approximatemaximum price is determined based on a list price of the product.

Method #4. A method according to Method #1, wherein the approximatemaximum price is determined based on past offers of the product.

Method #5. A method according to Method #1, wherein the approximatemaximum price is determined based on demand for the product.

Method #6. A method according to Method #1, wherein the approximatemaximum price is determined based on availability of the product.

Method #7. A method according to Method #1, further comprising:determining a current value of the product based on the approximatemaximum price and on a cost of the product.

Method #8. A method according to Method #7, wherein the current value isa number of alternate currency points that must be earned by the casinoplayer in order for the casino player to be offered the product.

Method #9. A method according to Method #8, further comprisingdetermining a number of alternate currency points earned by the casinoplayer based on the gaming activity.

Method #10. A method according to Method #1, wherein the approximatemaximum price is different from a list price of the product.

Method #11. A method comprising: receiving player data corresponding togaming activity of a casino player; determining an approximate maximumprice for which a product may be sold through a retail channel; anddetermining to offer the product to the casino player based on theplayer data and on the price.

Method #12. A method according to Method #11, wherein the step ofdetermining to offer the product comprises: determining a current valueof the product based on the approximate maximum price and on a cost ofthe product.

Method # 13. A method according to Method #11, wherein the step ofdetermining to offer the product further comprises: determining anexpected profit based on the player data; determining whether thecurrent value is less than the expected profit; and determining to offerthe product to the casino player if the current value is less than theexpected profit.

Method #14. A method according to Method #12, wherein the current valueis a first number of alternate currency points that must be earned bythe casino player in order for the casino player to be offered theproduct.

Method #15. A method according to Method #14, wherein the player datacomprises a second number of alternate currency points earned by thecasino player.

Method #16. A method according to Method #15, further comprisingoffering the product to the casino player if the second number ofalternate currency points earned by the casino player is greater thanthe first number of alternate currency points.

Method #17. A method according to Method #11, further comprising:determining an offer price of the product; and offering the product tothe casino player for the offer price.

Method #18. A method according to Method #17, wherein the offering stepcomprises: transmitting to the casino player a condition which must besatisfied for the casino player to receive the product.

Method #19. A method according to Method #17, wherein the offer price is$0.

Method #20. A method according to Method #11, wherein the approximatemaximum price is different from a list price of the product.

Method #21. A method according to Method #11, further comprising:detecting a request from the casino player to convert casino credit tocurrency; and offering the product to the casino player after therequest is detected.

Method #22. A method according to Method #11, further comprising:detecting a request from the casino player to discontinue a gamingsession; and offering the product to the casino player after the requestis detected.

Method #23. A method according to Method #11, further comprising:detecting a player win of a prize amount; and offering the product tothe casino player after the player win is detected.

Method #24. A method according to Method #23, wherein the prize amountis a first amount, and wherein the casino player is offered the productand a second prize amount which is less than the first amount.

Method #25. A method according to Method #11, further comprising:determining if a product should be offered to the casino player based onthe player data.

Method #26. A method according to Method #11, wherein the player datacomprises data concerning interests of the casino player.

Method #27. A method according to Method #11, wherein the player datacomprises data concerning past activity of the casino player.

Method #28. A method according to Method #11, wherein the approximatemaximum price is determined based on past offers of the product.

Method #29. A method according to Method #11, wherein the approximatemaximum price is determined based on a cost of the product.

Method #30. A method according to Method #11, wherein the approximatemaximum price is determined based on a list price of the product.

Method #31. A method according to Method #11, wherein the approximatemaximum price is determined based on demand for the product.

Method #32. A method according to Method #11, wherein the approximatemaximum price is determined based on availability of the product.

Method #33. A method comprising: receiving player data corresponding togaming activity of a casino player; and determining to offer a productto the casino player based on the player data and on an approximatemaximum price for which the product may be sold through a retailchannel.

Method #34. A method comprising: receiving player data corresponding togaming activity of a casino player; identifying a product to offer tothe casino player based on the received player data and a first rule;and determining an offer price for the product based on a second rulecorresponding to the product.

Method #35. A method according to Method #34, further comprisingoffering the product to the casino player for the offer price.

Method #36. A method according to Method #35, further comprising:detecting a request from the casino player to convert casino credit tocurrency; and offering the product to the casino player after therequest is detected.

Method #37. A method according to Method #35, further comprising:detecting a request from the casino player to discontinue a gamingsession; and offering the product to the casino player after the requestis detected.

Method #38. A method according to Method #35, further comprising:detecting a player win of a prize amount, wherein the product is offeredto the casino player after the prize amount is detected.

Method #39. A method according to Method #38, wherein the prize amountis a first amount, and wherein the casino player is offered the productand a second prize amount which is less than the first amount.

Method #40. A method according to Method #34, further comprising:determining if a product should be offered to the casino player based onthe player data.

Method #41. A method according to Method #34, wherein the player datacomprises data concerning interests of the casino player.

Method #42. A method according to Method #34, wherein the player datacomprises data concerning past activity of the casino player.

Method #43. A method according to Method #34, wherein the first rule isbased on availability of the product.

Method #44. A method according to Method #34, wherein the second rule isbased on availability of the product.

Method #45. A method according to Method #34, wherein the first rule isbased on a cost of the product.

Method #46. A method according to Method #34, wherein the second rule isbased on a cost of the product.

Method #47. A method according to Method #34, wherein the first rule isbased on a current value of the product.

Method #48. A method according to Method #34, wherein the second rule isbased on a current value of the product.

Method #49. A method according to Method #34, wherein the offer price isdifferent from a list price of the product.

Method #50. A method for determining a product to offer a casino player,comprising: receiving player data concerning gaming activity of a casinoplayer; receiving product information concerning a plurality ofproducts; for each of the plurality of products, determining arespective approximate maximum price for which a product may be soldthrough a retail channel; determining a respective cost for each of theplurality of products; determining a current value of each of theplurality of products based on a respective approximate maximum priceand a respective cost; based on the player data, determining an expectedprofit resulting from an offer of each of the plurality of products; anddetermining to offer one of the plurality of products based on thecurrent value of the one product and the expected profit resulting froman offer of the one product.

Method #51. A method according to Method #50, wherein the step ofdetermining to offer the one of the plurality of products comprises:determining a product of the plurality of products for which an expectedprofit exceeds a current value by a greater amount than for any other ofthe plurality of products.

System #1. A system to determine a product to offer to a casino player,comprising:

a game machine, the game machine comprising:

-   -   a game machine processor, and    -   a game machine memory storing processor-executable game machine        process steps,    -   wherein the game machine processor is operative with the game        machine processor-executable process steps to:    -   i) obtain a player identifier identifying a casino player;    -   ii) obtain gaming data corresponding to the casino player; and    -   iii) transmit the player identifier and the gaming data; and

a controller, the controller comprising;

-   -   a controller processor, and    -   a controller memory storing processor-executable controller        process steps,    -   wherein the controller processor is operative with the        controller processor-executable process steps to:    -   i) receive the player identifier and the gaming data;    -   ii) receive product information concerning a plurality of        products;    -   iii) determine, for each of the plurality of products, a        respective approximate maximum price for which a product may be        sold through a retail channel;    -   iv) determine a respective cost of each of the plurality of        products;    -   v) determine a current value of each of the plurality of        products based on a respective approximate maximum price and a        respective cost;    -   vi) based on the gaming data, determine an expected profit        resulting from an offer of each of the plurality of products;        and    -   vii) determine to offer one of the plurality of products based        on the current value of the one product and the expected profit        resulting from an offer of the one product.

Medium #1. A computer-readable medium storing computer-executableprocess steps, the process steps comprising: a step to identify aproduct which may be offered to a casino player based on gaming activityof the casino player; and a step to determine an approximate maximumprice for which the product may be sold through a retail channel.

Medium #2. A computer-readable medium storing computer-executableprocess steps, the process steps comprising: a step to receive playerdata corresponding to gaming activity of a casino player; a step todetermine an approximate maximum price for which a product may be soldthrough a retail channel; and a step to determine to offer the productto the casino player based on the player data and on the price.

Medium #3. A computer-readable medium storing computer-executableprocess steps according to Medium #2, wherein the step to determine tooffer the product comprises: a step to determine a current value of theproduct based on the approximate maximum price and on a cost of theproduct.

Method #4. A computer-readable medium storing computer-executableprocess steps according to Method #3, wherein the step to determine tooffer the product further comprises: a step to determine an expectedprofit based on the player data; a step to determine whether the currentvalue is less than the expected profit; and a step to determine to offerthe product to the casino player if the current value is less than theexpected profit.

Medium #5. A computer-readable medium storing computer-executableprocess steps, the process steps comprising: a step to receive playerdata corresponding to gaming activity of a casino player; a step toidentify a product to offer to the casino player based on the receivedplayer data and a first rule; and a step to determine an offer price forthe product based on a second rule corresponding to the product.

Game Machine #1. A game machine comprising:

a memory storing processor-executable process steps; and

a processor,

wherein the processor is operative with the processor-executable processsteps stored in the memory to:

1) identify a product which may be offered to a casino player based ongaming activity of the casino player; and

2) determine an approximate maximum price for which the product may besold through a retail channel.

Game Machine #2. A game machine comprising:

a memory storing processor-executable process steps; and

a processor,

wherein the processor is operative with the processor-executable processsteps stored in the memory to:

1) receive player data corresponding to gaming activity of a casinoplayer;

2) determine an approximate maximum price for which a product may besold through a retail channel; and

3) determine to offer the product to the casino player based on theplayer data and on the price.

Game Machine #3. A game machine according to Game Machine #2, whereinthe processor is further operative with the processor-executable processsteps stored in the memory to determine a current value of the productbased on the approximate maximum price and on a cost of the product.

Game Machine #4. A game machine according to Game Machine #3, whereinthe processor is further operative with the processor-executable processsteps stored in the memory to: 1) determine an expected profit based onthe player data; 2) determine whether the current value is less than theexpected profit; and 3) determine to offer the product to the casinoplayer if the current value is less than the expected profit.

Game Machine #5. A game machine comprising:

a memory storing processor-executable process steps; and

a processor,

wherein the processor is operative with the processor-executable processsteps stored in the memory to:

1) receive player data corresponding to gaming activity of a casinoplayer;

2) identify a product to offer to the casino player based on thereceived player data and a first rule; and

3) determine an offer price for the product based on a second rulecorresponding to the product.

Apparatus #1. An apparatus comprising: means for determining a productwhich may be offered to a casino player based on gaming activity of thecasino player; and means for defining an approximate maximum price forwhich the product may be sold through a retail channel.

Apparatus #2. An apparatus comprising: means for obtaining player datacorresponding to gaming activity of a casino player; means for definingan approximate maximum price for which a product may be sold through aretail channel; and means for deciding to offer the product to thecasino player based on the player data and on the price.

Apparatus #3. An apparatus according to Apparatus #2, wherein the meansfor deciding comprises: means for defining a current value of theproduct based on the approximate maximum price and on a cost of theproduct.

Apparatus #4. An apparatus according to Apparatus #3, wherein the meansfor deciding further comprises: means for defining an expected profitbased on the player data; means for defining whether the current valueis less than the expected profit; and means for deciding to offer theproduct to the casino player if the current value is less than theexpected profit.

Apparatus #5. An apparatus comprising: means for obtaining player datacorresponding to gaming activity of a casino player; means fordetermining a product to offer to the casino player based on thereceived player data and a first rule; and means for defining an offerprice for the product based on a second rule corresponding to theproduct.

While the present invention has been described above with respect toseveral embodiments, the scope of the invention is not deemed limited tothe above embodiments. Rather, the present invention covers allembodiments falling within the scope and spirit of the following claimsas well as equivalent arrangements thereof.

1. A method comprising: identifying a product that may be offered to acasino player based on gaming activity of the casino player; determiningan approximate maximum price for which the product may be sold through aretail channel; detecting a request from the casino player to convertcasino credits to currency; and in response to detecting the request,offering the product to the casino player. 2-20. (canceled)